PeopleFund Blog

Collateral Damage: The Impact of the Government Shutdown on Small Businesses

By Meghan C. Rauker

The ongoing partial government shutdown has now entered its 27th day, the longest lasting government shutdown in United States history. An estimated 800,000 federal workers have been affected by the lapse in funding—either by having to work without pay while it lasts or by being furloughed. JP Morgan Chase estimates the US economy is losing more than $41.5 billion a week because of the shutdown.

While the effects of the partial government shutdown can be most clearly seen through the closure of National Parks and longer lines at the airport- the same is true for aspiring entrepreneurs and established small business owners alike. Nonprofits relying on federal grants or government payments for services are becoming collateral damage as the shutdown drags on and companies that aren’t getting loans or payments are unable to continue operations.

Recognizing this enormous need, PeopleFund created the federal government shutdown emergency bridge funding for nonprofits and social agencies. If your nonprofit organization requires immediate support due to a lack of federal funds, PeopleFund has funds up to $50,000 in low interest capital available to organizations in need. This bridge funding is designed to help organizations meet payroll and other organizations as they await repayment from the federal government.

If you are in need of capital for your organization, please contact PeopleFund’s Director of Lending, Jemerell Rogers, at [email protected] or 512.220.2119

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